E-Malt.com News article: Kenya: Barley growers want better prices

Barley farmers in Nakuru are urging East African Breweries Ltd (EABL) to increase prices of the crop to cover increased cost of production, East African Standard reported October 1.

Speaking on behalf of farmers in Nakuru, Mr Godfrey Gicharu, said the current price of Sh1,767 per 90kg bag was not enough to meet production costs.

"Barley farmers are looking forward to better prices as a 90kg sack of wheat is going for Sh2,700 and the cost of production is close to that of barley," he said.

Last month, East African Malting Limited (EAML), a subsidiary of EABL, adjusted the purchase prices for barley upwards. Farmers financed by the brewer are earning Sh1,767 per 90kg bag, up from Sh1,733. Non-malt barley farmers now earn Sh1,588 for a 90kg bag, up from Sh1,350. Self-financed farmers sell their malted barley to EAML at Sh2,016, up from Sh1,980, while non-malt barley sell a 90kg bag for Sh1,836, up from Sh1,350.

EAML General Manager, Mr Phillip Kalii, urged farmers to grow more acreage of the crop to increase their earnings.

Kalii pointed out that wheat prices had gone up due to shortage of the commodity in the world market and this is a temporary situation. "Barley farmers on the other hand have had a ready stable market since 1978," he said.


03 October, 2007